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Deal to curb billions in overfishing subsidies comes into force at WTO

PHILIPPINE STAR/ MICHAEL VARCAS

GENEVA – A landmark agreement to curb billions of dollars in subsidies contributing to overfishing came into force on Monday, the World Trade Organization said – a move activists hailed as a step towards helping global fish stocks recover.

It was the first agreement to take effect at the WTO since 2017 after years of stalled debates and infighting on top of, more recently, a surge in US tariffs that left some critics asking whether the Geneva-based body had a future.

The formal ratification by Brazil, Kenya, Tonga and Vietnam on Monday meant the deal, first agreed in 2022, now had the required support of two thirds of members, a WTO spokesperson said.

Governments are now prohibited from providing subsidies for overfished stocks and for fishing in international waters beyond their jurisdictions. Poorer states will be able to access a fund to help ease them into the deal.

“Fish stocks around the world will have a chance to recover, benefitting local fishers who depend on a healthy ocean,” Megan Jungwiwattanaporn from the Pew Charitable Trusts said.

Governments around the world pay out roughly $35.4 billion annually to their fishing fleets, including fuel handouts that allow them to fish in distant oceans, a 2019 study in Marine Policy showed. It listed the top five subsidisers as China, the EU, the United States, South Korea and Japan – though not all of them are within the scope of the WTO deal.

Negotiations on further fishing rules covering divisive issues excluded from the first deal have floundered, as India and other developing economies seek carve-outs that many other states see as unworkable.

The first part of the agreement that came into force on Monday took more than 20 years of negotiations and will expire in four years if more comprehensive rules are not agreed.

Director-General Ngozi Okonjo-Iweala said in an interview earlier this month that she saw grounds for optimism that the body could either conclude the talks or find a way to stop the first deal from expiring. — Reuters

Savor the flavors at SM Supermalls’ Food Fest

From Filipino favorites to world-class eats, all in one festival

This September, SM Supermalls invites foodies nationwide to embark on a delicious culinary journey at SM Food Fest 2025!

It’s a month-long celebration of food, feasts, and fun that delights everyone with a gastronomic experience of flavors. From Filipino comfort food to Mediterranean feasts, Japanese classics, Italian staples, and Mexican bites, SM Food Fest brings together the best of the best under one roof. And what better way to celebrate than by diving into each restaurant’s crowd-favorite dishes?

Celebrate life the Mediterranean way!

The famous Meat Platter Lamb from Souv! by Cyma is perfect for sharing, while the hummus and pita are sure to tickle your tastebuds.

This is how Greece celebrates: with food, with family, and with flavor. At Souv! by Cyma, indulge in their slow-roasted Meat Platter Lamb that’s grilled to perfection. For lighter bites, the hummus and cheese saganaki, featuring crispy fried mizithra cheese with fig jam and honey, are sure to satisfy.

Oh My Greek Tavern’s Gyro Rice and Spanakopita are true Mediterranean delights.

Over at Oh My Greek Tavern, treat yourself to their Pork or Beef Gyro Rice and savor every delicious bite. For something flaky and hearty, the Spanakopita — a Greek classic filled with spinach and feta, wrapped in golden pastry — brings savory flavors and comfort to every plate.

Indulge in Italian flavors

Amici’s Spaghetti White Vongole E Gamberetti and Frutti di Mare Pizza are oozing with seafood goodness.

A stop at Amici means comfort food made for sharing. Their Spaghetti White Vongole E Gamberetti remains a crowd favorite, along with Frutti di Mare Pizza and the hearty Spinach Artichoke Dip.

Italianni’s Chicken Cacciatore and Eggplant Parmigiana are timeless Italian classics.

At Italianni’s, it’s all about the classics that keep diners coming back: Seafood Cioppino, Eggplant Parmigiana, Chicken Cacciatore, and Chicken Florentine. Pair these with their famous Sicilian Salad for a hearty Italian spread that feels like home.

Take pride in Filipino flavors

Mesa’s iconic Crispchon and Tinapa Rolls are crispy, flavorful, and unforgettable.

Mesa Filipino Moderne takes pride in reinventing traditional dishes. Their iconic Crispchon, a deep-fried piglet wrapped in malunggay crepe with cucumber, leeks, and wansoy, steals the show with its succulent meat and crispy skin. It is made more delectable by their store-made dips, making it the star of the table. Other crowd-pleasers that are creative twists on Filipino heritage flavors include Tinapa Rolls, Binagoongang Baboy ni Kaka, and Pomelo Salad.

Manam’s famous Sinigang na Beef Short Rib and Watermelon is a modern twist on a Pinoy favorite, and their Crispy Sisig is a must!

Meanwhile, Manam continues to win hearts with its beloved Sinigang na Beef Short Rib & Watermelon, a refreshing and hearty take on the classic sour stew. Other best-sellers like Sizzling Corned Beef Belly Kansi, House Crispy Sisig, and Crispy Pancit Palabok prove why it’s a go-to for groups craving modern Filipino comfort food.

Say itadakimasu and dive into an authentic Japanese feast

Yayoi’s Chicken Namban Teishoku and Nagoya-style Hitsumabushi Teishoku are sets that are loved for their flavor and balance.

For Japanese food lovers, Yayoi serves hearty teishoku sets that are both filling and flavorful. Their best-selling Chicken Namban Teishoku, with crispy fried chicken topped with tartar sauce, is a must-try. Equally popular are the Teriyaki Salmon Teishoku with stir-fried vegetables, and the Nagoya-style Hitsumabushi Teishoku with grilled eel over rice, served with a warm dashi broth.

Ramen Nagi’s rich and flavorful Butao King ramen and Black King ramen are all-time best-sellers.

On the other hand, ramen fans know there’s no better place than Ramen Nagi. Its signature bowls — the Butao King (the original tonkotsu favorite), the fiery Red King, and the bold Black King — are cult favorites. Limited-edition flavors also make every visit an exciting experience.

Spice up your weekends with smoky, savory Mexican delights

Gringo’s Smokehouse Barbecue Ribs and Char-grilled Chicken serve fall-off-the-bone goodness with every bite.

For bold, smoky flavors, Gringo never disappoints. The tender and meaty Smokehouse Barbecue Ribs come served with a side of nachos for the perfect bite. And of course, there’s Gringo’s Char-grilled Chicken with its flavor that’s off the charts and tenderness that melts in your mouth.

Chili’s Fajita Trio and Tostada Chips & Salsa are a Tex-Mex twist on Mexican classics.

Chili’s, a Tex-Mex icon, offers a fun twist with its playful menu. Standout items include the Fajita Trio, Tacos, and the iconic Tostada Chips & Salsa.

It’s a feast for every craving!

Whether you’re craving a Greek feast, Italian pasta, Filipino comfort food, Japanese ramen, or Mexican street eats, SM Food Fest has something for every palate. This September, gather your family and friends, explore a world of flavors, and celebrate food that brings people together — only at SM Supermalls.

For more details, visit www.smsupermalls.com or follow @SMSupermalls on social media.

 


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China says intercepted Philippine ships at disputed South China Sea shoal

PHILIPPINE COAST GUARD PHOTO

BEIJING – China’s coast guard said Tuesday it had “taken control measures” against several Philippine vessels at the disputed Scarborough Shoal in the South China Sea, as Beijing moves to reinforce its territorial claims and maritime rights in the contested region.

The Philippines and China have been engaged in a long-running maritime standoff in the strategic waterway that has included regular clashes between coast guard ships and massive naval exercises.

China approved plans to turn Scarborough Shoal – which Beijing calls Huangyan Island and which is known in the Philippines as the Panatag Shoal – into a national nature reserve last week, without announcing its specific boundaries.

Analysts said the move amounted to China trying to take the moral high ground in the dispute between Beijing and Manila over the atoll, part of a wider contest over sovereignty and fishing access in the South China Sea, a conduit for more than $3 trillion of annual ship-borne commerce.

The Philippines embassy in Beijing did not immediately respond to a request for comment.

“On September 16, the China Coast Guard took control measures against a number of Philippine officials vessels operating illegally in the territorial waters of the Scarborough Shoal in accordance with the law,” the coast guard said on its official WeChat, a social media platform.

China claims almost the entire South China Sea, overlapping the exclusive economic zones of Brunei, Indonesia, Malaysia, the Philippines and Vietnam. Unresolved disputes have festered for years over ownership of various islands and features.

In 2016, the Permanent Court of Arbitration in the Hague ruled that China’s sweeping claims in the region were not supported by international law, a decision that Beijing rejects. — Reuters

Philippine auto sales decline by 7.6% in August

A shopping mall’s parking area is full of vehicles in this file photo taken on June 30, 2024. — PHILIPPINE STAR/MIGUEL DE GUZMAN

New vehicle sales slid by 7.6% in August amid a slump in sales of passenger cars and commercial vehicles, an industry report showed.

A joint report by the Chamber of Automotive Manufacturers of the Philippines, Inc. (CAMPI) and the Truck Manufacturers Association (TMA) showed vehicle sales fell to 36,174 last month from 39,155 units in the same month in 2024.

Month on month, vehicle sales also went down by 5.5% from the 38,295 units sold in July.

Sales of commercial vehicles, which made up 79.02% of the industry’s total sales, slipped by 3.5% to 28,583 units in August from 29,626 units a year ago.

Month on month, sales of commercial vehicles dropped by 5.3% from 30,175 units in July.

On the other hand, sales of passenger cars, which accounted for over a fifth of the total industry sales, slumped by 20.3% to 7,591 units in August from 9,529 units a year ago.
Month on month, passenger car sales slipped by 6.51% from 8,120 units sold in July. — Justine Irish D. Tabile

US, China reach framework deal on TikTok; Trump and Xi to speak on Friday

MYRIAMMIRA-FREEPIK

MADRID/WASHINGTON – US and Chinese officials said on Monday they have reached a framework agreement to switch short-video app TikTok to US-controlled ownership that will be confirmed in a Friday call between US President Donald Trump and Chinese President Xi Jinping.

The potential deal on the popular social media app, which counts 170 million US users, was a rare breakthrough in months-long talks between the world’s No. 1 and No. 2 economies that have sought to defuse a wide-ranging trade war that has unnerved global markets.

After a meeting with Chinese negotiators in Madrid, US Treasury Secretary Scott Bessent said a September 17 deadline that could have disrupted the popular social media app in the US encouraged Chinese negotiators to reach a potential deal.

He said that deadline could be extended by 90 days to allow the deal to be finalized, but declined to discuss specifics of the deal.

Bessent said when commercial terms of the deal are revealed, it will preserve cultural aspects of TikTok that Chinese negotiators care about.

“They’re interested in Chinese characteristics of the app, which they think are soft power. We don’t care about Chinese characteristics. We care about national security,” Bessent told reporters at the conclusion of two days of talks.

Trump, when asked if China would hold a stake in the company, told reporters, “We haven’t decided that but it looks to me, and I’m speaking to President Xi on Friday, for confirmation of that.”

It is the second time this year that the two sides have said they were nearing a TikTok deal. The earlier announcement in March ultimately did not pan out.

Any agreement could require approval by the Republican-controlled Congress, which passed a law in 2024 requiring divestiture due to fears that TikTok’s US user data could be accessed by the Chinese government, allowing Beijing to spy on Americans or conduct influence operations through the app.

But the Trump administration has repeatedly declined to force a shutdown, which could anger the app’s millions of users and disrupt political communications. Trump has credited the app with helping him win re-election last year, and his personal account has 15 million followers. The White House launched an official TikTok account last month.

“A deal was also reached on a “certain” company that young people in our Country very much wanted to save. They will be very happy! I will be speaking to President Xi on Friday. The relationship remains a very strong one!!!” Trump wrote on his Truth Social platform.

Bessent did not say whether parent company ByteDance would transfer control of the app’s underlying technology to the unnamed US buyer. Wang Jingtao, an official at the Chinese cyberspace regulator, said the deal could licence intellectual property rights, including algorithms.

Aside from TikTok, the US has cited national security concerns to block shipments of semiconductors and other advanced technology to China, and ban Chinese products that Washington has concluded could be used to spy on Americans or gather intelligence.

China’s top trade negotiator, Li Chenggang, told reporters that those concerns amounted to “unilateral bullying.”

“The United States cannot on the one hand ask China to take care of its concerns, and on the other hand continue to suppress Chinese companies,” Li said.

Li said the two sides had reached a “basic framework consensus” on resolving TikTok-related issues – a slight variation from the language used by the US side.

The US-China meeting at the Spanish foreign ministry’s baroque Palacio de Santa Cruz was the fourth round of talks in four months to address strained trade ties as well as TikTok’s divestiture deadline.

Delegations led by Bessent and Chinese Vice Premier He Lifeng have met in European cities since May to try to resolve a trade war that has seen tit-for-tat tariff hikes and a halt in the flow of rare earths to the United States.

TRUMP, XI TO DISCUSS MEETING

Trump has repeatedly expressed interest in a meeting with Xi, and China is trying to woo Trump to Beijing for a summit. Bessent said it was up to the leaders to discuss whether to meet during Friday’s call.

A source familiar with the talks said the US team told the Chinese side that any potential meeting this fall would have been off the table if the two failed to reach a deal on TikTok in Madrid.

The talks took place as Washington demands that its allies place tariffs on imports from China over Chinese purchases of Russian oil, which Beijing on Monday said was an attempt at coercion. Bessent said the issue of Russia was briefly discussed.

Beijing separately announced on Monday that a preliminary investigation of Nvidia found the US chip giant had violated its anti-monopoly law. Bessent said the announcement on Nvidia was poor timing.

The probe is widely seen as a retaliatory shot against Washington’s curbs on the Chinese chip sector. — Reuters

Cash remittances hit 7-month high at $3.18 billion in July

PHILIPPINE STAR/ MIGUEL DE GUZMAN

By Katherine K. Chan

FILIPINOS ABROAD sent more money home in July, hitting a seven-month high as remittances from sea-based workers grew at a slightly quicker pace than those from land-based workers, the Bangko Sentral ng Pilipinas (BSP) said on Monday.

Cash remittances coursed through banks jumped by 3% to $3.179 billion in July from $3.085 billion in the same month a year ago, data from the central bank showed.

This marked the highest monthly remittance level since the $3.38 billion posted in December last year.

250916OFW_Remittances

Month on month, remittances grew by 7% from $2.987 billion previously.

“The Philippines saw sustained growth in cash remittances in July of this year, with remittances from sea-based overseas Filipinos (OFs) increasing slightly faster than funds from land-based OFs,” the BSP said in a statement.

Money sent home by land-based workers made up the bulk of cash remittances in July, which went up by 3% year on year to $2.59 billion.

Remittances from sea-based workers rose by 3.1% year on year to $585 million in July.

“The peso’s relative weakness against the US dollar also encouraged higher remittances, as families received greater peso value,” Ruben Carlo O. Asuncion, chief economist at the Union Bank of the Philippines (UnionBank), said in a Viber message.

In July, the peso performed weaker at an average P56.7523 per US dollar from the P56.3586 recorded in June.

Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message that the remittances growth in July was also driven by the start of the school season which meant overseas Filipino workers (OFWs) sent more money to their families to pay for tuition fees and school supplies.

Mr. Ravelas said global job stability may have allowed sea-based workers to send home more money.

Mr. Asuncion said the increase in remittances by sea-based workers reflects “strong demand in the maritime sector, buoyed by stable global trade and the recovery of cruise operations.”

“Higher dollar-denominated wages and renewed contracts for seafarers contributed to this growth, underscoring the sector’s resilience and its role as a stabilizing force for overall remittance inflows,” he said.

Meanwhile, personal remittances, which include both cash coursed through banks and informal channels and in-kind remittances, climbed by 3.1% to $3.53 billion in July from $3.43 billion in the same month last year.

Most of the personal remittances that month came from workers with contracts of one year and above, amounting to $2.81 billion, up 3% from a year earlier.

Those with contracts of less than one year sent home $650 million, rising by 3.3% year on year.

SEVEN-MONTH PERIOD
In the first seven months of the year, cash remittances from OFWs increased by 3.1% to $19.932 billion from $19.332 billion a year ago.

This as remittances sent by land-based workers rose by 3.3% to $15.97 billion during the period, while sea-based workers’ remittances inched up by 2.3% to $3.96 billion.

Filipinos in the United States accounted for 40.3% of the total cash remittances sent in the January-to-July period.

This was followed by OFWs in Singapore (7.1%), Saudi Arabia (6.2%), Japan (5%), the United Kingdom (4.8%), the United Arab Emirates (4.4%), Canada (3.4%), Qatar (2.9%), Taiwan (2.8%) and South Korea (2.7%).

Personal remittances in the first seven months reached $22.206 billion, up by 3.1% from $21.532 billion a year prior.

Mr. Asuncion said the upcoming holiday season will allow remittances to sustain its growth in the coming months.

“Looking ahead, remittances are expected to maintain an upward trajectory in the coming months, supported by seasonal inflows during the ‘-ber’ months and the holiday season,” he said.

However, the UnionBank economist also noted that global economic uncertainty and policy changes across the world pose risks to the country’s remittances growth.

“Nonetheless, steady overseas employment and a competitive peso should help sustain positive momentum,” he added.

The BSP expects cash remittances to grow by 2.8% to $35.5 billion this year.

Marcos vows independent probe into flood-control irregularities

President Ferdinand R. Marcos, Jr. holds a press conference in Kalayaan Hall, Malacañan Palace on Sept. 15. He named former Justice Andres B. Reyes, Jr. as the head of the Independent Commission for Infrastructure. — PHILIPPINE STAR/RYAN BALDEMOR

By Chloe Mari A. Hufana, Reporter

PHILIPPINE President Ferdinand R. Marcos, Jr. on Monday said his newly created commission investigating irregularities in the multibillion-peso flood-control projects would operate independently and free of political bias, seeking to distinguish it from congressional inquiries that he said risk conflicts of interest.

The President issued the remarks as he appointed retired Supreme Court Associate Justice Andres B. Reyes, Jr. as chairman of the Independent Commission for Infrastructure (ICI).

“It will be completely independent,” Mr. Marcos told a Palace briefing. “That’s something that cannot be said if, for example, the Senate conducts [an investigation]… People ask why they are investigating themselves, which is always a little bit of a difficult situation.”

The ICI has been formed to probe alleged corruption in public works, zeroing in on defective flood control projects that drew criticism after heavy rains and storms submerged several towns and cities in recent months.

Mr. Marcos vowed the ICI will be independent, adding he will not interfere or direct the body on how their investigations are done.

He said the commission’s members have no ties to government, except for Baguio City Mayor Benjamin B. Magalong who was appointed as special adviser but opted to retain his local post.

“We have taken great pains to make sure that independence is recognized,” he added.

“There’s only one way to do it… they will not be spared,” Mr. Marcos said when asked about his cousin and House Speaker Ferdinand Martin G. Romualdez’s alleged role in the scams.

This comes after Navotas Rep. Tobias M. Tiangco implicated Mr. Romualdez and former House Appropriations Chair Elizaldy S. Co as some of the lawmakers who allegedly received kickbacks from government contractors. They both have denied all allegations.

Mr. Romualdez, in a separate statement, said the chamber will not shield lawmakers implicated in anomalous flood control projects, stressing the issue is “bigger than personalities.”

He vowed the House would cooperate with Mr. Marcos’ independent commission, calling it a chance to “cleanse the system.”

ICI CHAIRMAN
Mr. Marcos on Monday announced the appointment of Mr. Reyes as chairman of the ICI, saying the former SC Justice has a “very good record of honesty and fairness.”

“We have to make it nothing less than a turning point in the conduct of governance in the Philippines. We have to make a change, and it is a fundamental change in the way that we do business,” he said, quoting the ICI chief.

The President created the commission through Executive Order No. 94 to investigate anomalies in flood control and other infrastructure projects, with authority to recommend criminal, civil and administrative charges.

“The power to hold people in contempt, I think, was not necessary (to the ICI) simply because this is not a prosecutorial body — this is an investigative body,” Mr. Marcos said.

The commission is set to meet daily to finalize its organizational matters, including the structure of the secretariat, staffing needs, officer assignments and necessary forms. Whether their meetings will be held privately or publicly will be left to their discretion.

Mr. Reyes, 75, was an appointee of former President Rodrigo R. Duterte and a graduate of the Ateneo de Manila University School of Law. He was a Supreme Court justice from 2017 until his retirement in 2020.

Mr. Reyes earned a master’s degree in public administration from the Philippine Women’s University. He is a “third-generation justice” in the family, according to his profile on the Supreme Court website. His grandfather Alex A. Reyes, Sr. was a justice of the Court of Appeals and Supreme Court.

Joining him as members of the fact-finding body are former Public Works Secretary Rogelio L. Singson and SGV & Co. Country Managing Partner Rossana A. Fajardo.

Ederson DT. Tapia, a political science professor at the University of Makati, said Mr. Marcos’ approach of sparing no one builds the credibility of his anti-graft push.

He expressed confidence in the commission’s members, Mr. Reyes, Mr. Singson, and Ms. Fajardo, citing their track record.

“I think they are also well aware that all eyes are on them, so I suppose they will not leave any stone unturned in their quest for accountability,” he said via Facebook Messenger.

Arjan P. Aguirre, who teaches political science at the Ateneo de Manila University, said that the new independent commission suffers from a “capability deficit” because it is an executive creation still subject to Mr. Marcos’ influence, has vague powers limited to seeking agency cooperation, and lacks transparency in member selection. 

He said the move appears poorly planned or possibly designed to let the administration control the investigation and shield allies.

“This most recent political move of Marcos, Jr. can be perceived as something that is not well-thought-of, or if it is, it can be interpreted as a way to control the investigative process — perhaps to protect some of its key allies,” he said via Facebook Messenger.

FLOOD CONTROL FUNDS
Meanwhile, Mr. Marcos said the funds from canceled flood control projects in the 2026 budget will be redirected to key sectors, including education, health, agriculture, housing, infrastructure, information and communications technology, labor, social services, and energy.

He said a detailed spending “menu” has been prepared to guide lawmakers in reallocating the funds.

“Now that we have canceled all flood control projects for 2026, we have already prepared a menu for those savings so that, first of all, even in the budget now being drafted, it will be very clear that the funds will go to the proper places,” he said in mixed English and Filipino.

While no fresh allocation will be made for flood control in 2026, the President clarified that the P350 billion already set aside for 2025 projects must first be fully utilized.

The President also said local governments will again be authorized to inspect national projects before completion and turnover, a safeguard scrapped under the previous administration.

‘EXPRESS IT’
Meanwhile, Mr. Marcos backed planned protests against corruption on Sept. 21.

Mr. Marcos, the son of the late strongman who stole as much as $10 billion (P503 billion) from the Filipino people according to government estimates, said that if he were not a President, he would also join the demonstrations.

“They are enraged, of course they are angry. I’m angry, we should all be angry, because what is happening is not right,” he said.

“So, yes, express it. You come, make your feelings known to these people, and make them answerable for the wrongdoings that they have done.”

Two major demonstrations are scheduled on Sunday (Sept. 21) — one at Luneta Park in Manila and another at the People Power Monument in Quezon City.

The date also marks the country’s commemoration of the declaration of Martial Law by the late President Ferdinand E. Marcos, Sr.

Philippines now a step closer to re-entering JPMorgan’s bond index

The logo of J.P. Morgan is seen in Zurich, Switzerland July 8, 2021. — REUTERS/ARND WIEGMANN

By Bettina Faye V. Roc, Banking Editor

THE PHILIPPINES is now on the positive watchlist for JPMorgan Chase & Co.’s emerging market government bond index, putting it a step closer to re-entering the list that could help bring in more foreign investments.

JPMorgan said in a report on Sept. 12 that Philippine peso-denominated government bonds (RPGB) have been tagged as “Index Watch Positive,” according to statements from the Bangko Sentral ng Pilipinas (BSP) and the Department of Finance (DoF).

This is the final review phase for the bonds’ potential inclusion in the bank’s Government Bond Index for Emerging Markets (GBI-EM) series.

“Inclusion would be expected to attract more foreign investments, increasing liquidity and lowering borrowing costs for the government and eventually the private sector… While the Philippines has been able to raise funds from foreign investors through its dollar-denominated bonds since the early 2000s, inclusion in the GBI-EM series is expected to help the government draw more foreign investors to its larger peso-denominated bond market,” the BSP said.

JPMorgan’s GBI-EM tracks the performance of sovereign and quasi-sovereign bonds issued by emerging market countries. The country’s inclusion will need to be approved by a certain percentage of investors reviewing the index.

The Philippines would have a weight of about 1% of the GBI-EM Global Diversified Index if included, according to JPMorgan.

The Philippines’ global peso notes were removed from the GBI-EM in January last year due to illiquidity. For potential inclusion in the index are RPGBs issued from 2023 with tenors up to 20 years, the DoF said.

“Getting on the positive watchlist is a testament to the work the government and financial market leaders has done especially in the last few years to expand our capital markets, particularly our local bond market. This news serves as further impetus to execute more changes and reforms,” BSP Governor Eli M. Remolona, Jr. said.

“This is a promising development for the Philippines as the potential inclusion of our government bonds into this global index means increased capital inflows and therefore more funds for the government to better serve Filipinos. This is an excellent opportunity for us to promote our capital markets to a wider range of investors,” Finance Secretary Ralph G. Recto said.

National Treasurer Sharon P. Almanza earlier said it could take the Philippines two to three years to re-enter the bond index after getting added to JPMorgan’s watchlist.

The bank said it will conduct its Index Watch assessment within six to nine months and will provide updates in the first quarter of 2026.

The BSP and the DoF said that JPMorgan cited the Philippines’ “proactive market reforms,” including reviving the repo market, launching the Philippine Peso interest rate swap market, and the consolidation of benchmark tenors, in its decision to put the country on its index watchlist.

“JP Morgan also noted positive feedback from GBI-EM investors, particularly on the accessibility of the RPGB market via Brussels-based clearing house Euroclear, as well as improvements in secondary market liquidity through the consolidation of benchmark tenors… Due to reforms, foreign ownership of RPGBs has doubled from 1.8% in 2021 to 5.2% as of June 2025, JPMorgan said,” the BSP said.

Meanwhile, secondary market liquidity and taxation issues were among the key concerns raised by investors, it added.

AMLC says PHL unlikely to return to ‘gray list’

PHILIPPINE STAR/WALTER BOLLOZOS

By Katherine K. Chan

THE Anti-Money Laundering Council (AMLC) on Monday said the Philippines is unlikely to return to the Financial Action Task Force’s (FATF) “gray list,” despite a probe into allegations that former Public Works engineers laundered billions of pesos through casinos using funds meant for flood-control projects.

Asked if the Philippines may once again be included in the FATF’s gray list, AMLC Executive Director Matthew M. David said: “Hindi, hindi totoo ’yun (No, that’s not true).”

“We’re doing our best for the Philippines not to enter the gray list anymore,” he told reporters in Filipino on the sidelines of a Senate briefing on Monday.

The FATF removed the Philippines from its gray list of jurisdictions under increased monitoring for “dirty money” in February.

Mr. David said the Philippines is now preparing for the FATF’s next mutual evaluation in 2027.

Mutual evaluation is a process wherein the FATF, through the Asia Pacific Group for Money Laundering, assesses the Philippines for its compliance with the FATF recommendations and standards, he said.

However, Mr. David said the AMLC is now working on tracking potential money laundering by individuals involved in anomalous flood-control projects.

He said they are looking into the covered transaction reports (CTRs) and suspicious transaction reports (STRs) that have been filed to uncover possible money laundering.

“Because of the recent events regarding the flood-control project involving our public officials and the contractors, what we did was identify if there is a money laundering aspect through corruption,” he told reporters in Filipino.

“We see those from the CTRs, from the STRs, which were submitted by the covered persons including casinos and banks.”

Once these transaction reports are submitted, Mr. David said the AMLC will conduct an investigation and then file a freeze order, a civil forfeiture case or a money laundering case, accordingly. Then the AMLC will begin prosecution of the case.

Last week, Senate President Pro Tempore Panfilo “Ping” M. Lacson revealed a money laundering scheme allegedly conducted by some officials of the Department of Public Works and Highways (DPWH). These DPWH officials were allegedly using money siphoned off flood-control projects to play in casinos and exchange them for chips.

However, Russell Stanley Q. Geronimo, founder and managing lawyer of Geronimo Law, said recent corruption and money laundering controversies could bring the country back to the FATF’s gray list but not immediately.

“Evidence of illicit large-scale cash movement, such as the one testified on by DPWH Engineer Brice Hernandez, is unlikely, by itself, to cause immediate re-listing,” Mr. Geronimo told BusinessWorld in an e-mail.

“But if combined with other structural weaknesses, then there is a real risk of being placed back on the FATF gray list and the European Union and UK high-risk lists,” he added.

In a post on social media platform LinkedIn last week, Mr. Geronimo called on the FATF to revisit the Philippines’ removal from the gray list.

Besides money laundering, the officials may face charges of plunder, graft, malversation and tax evasion, among others, according to Mr. Geronimo.

“Officials can be charged with plunder if their kickbacks exceed P50 million, graft under Republic Act No. 3019 for taking percentages from contracts or granting unwarranted benefits, malversation for misappropriating public funds, and falsification for fake accomplishment reports and vouchers,” he said.

“They may also face direct or indirect bribery, and violations of the procurement law if bidding was rigged. The BIR (Bureau of Internal Revenu) could also pursue tax evasion since presumably kickbacks were not declared as income,” he added.

Mr. Geronimo also noted that no suspicions were raised from the AMLC or banks when the government released large funds for the DPWH’s flood projects, noting that oversight bodies are “mainly reactive.”

“The BSP (Bangko Sentral ng Pilipinas) imposes no ceiling on domestic cash withdrawals. This enabled large-scale illicit cash hoarding of proceeds of ghost or substandard projects,” he added.

John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said the country might return to these dirty money watchlists if the AMLC and the government fail to enforce anti-money laundering and combating the financing of terrorism (AML/CFT) policies and measures.

“Given the ongoing flood control corruption scandal, and now these alleged laundering schemes through casinos, the risk of relisting on the FATF gray list or the EU’s high-risk third country list is real, especially if the AMLC and government fail to show consistent enforcement,” he said in a Viber message.

Mr. Rivera noted that corruption in public infrastructure projects undermines investor confidence and weakens fiscal institutions’ credibility.

“When ill-gotten funds are funneled through opaque channels like casinos, it signals to both domestic and foreign investors that the rule of law and anti-corruption safeguards are fragile,” he said. “This raises perceived political and regulatory risk premiums, potentially dampening infrastructure investments and development lending.”

Mr. Rivera said the AMLC should enhance its casino-related reporting, prosecution of high-level offenders, audit of STRs and inter-agency coordination to ensure compliance with AML/CFT policies.

“To restore confidence, AMLC must tighten enforcement on casino-related reporting, increase prosecutions of high-level offenders, and demonstrate inter-agency coordination with PAGCOR (Philippine Amusement and Gaming Corp.), DoJ (Department of Justice), and CoA (Commission on Audit) in investigating politically exposed transactions,” he said. 

“Equally important is the protection of whistleblowers and a push for asset recovery mechanisms to ensure public funds are returned,” he added.

Meanwhile, Mr. Geronimo said the AMLC should take a more proactive approach and use its artificial intelligence and machine learning system to detect structuring across various accounts, track multi-bank transfers and link transactions involving several beneficial owners.

He added that the council should improve the quality of STRs from banks and casinos and use joint analytics to identify high-risk patterns.

“For credibility, AMLC must show that the system is working,” he added. “AMLC should coordinate with the BSP to address the absence of a domestic cash withdrawal limit. Very large encashments should trigger mandatory reviews or temporary holds, not just transaction reports.”

BIR INVESTIGATION
Meanwhile, the Bureau of Internal Revenue (BIR) said it tapped AMLC to help audit flood-control contractors for tax fraud.

In a statement on Monday, BIR Commissioner Romeo D. Lumagui, Jr. said AMLC’s access to financial data is crucial in verifying whether contractors involved in anomalous infrastructure projects have declared their income properly.

“The BIR is in close coordination with the AMLC in relation to the tax fraud audit of companies and individuals involved in anomalous flood control projects,” Mr. Lumagui said.

Mr. Lumagui met with AMLC’s Mr. David on Sept. 12, to discuss how tax evasion and money laundering charges may be filed against those found to have discrepancies between their bank records and tax filings.

“These bank reports and transactions can be analyzed with tax returns and payments in conducting a tax fraud audit. If the wealth of the contractor or individual as stated in bank records does not have corresponding tax payments, then there is a case for tax evasion,” the BIR said.

This move comes after the BIR’s announced a tax fraud audit to the top 15 flood-control contractors that cornered around 20% or P100 billion worth of flood-control projects since 2022. — with Aubrey Rose A. Inosante

DPWH sacks 3 Bulacan officials over anomalous flood control projects

Former Department of Public Works and Highways (DPWH) Assistant District Engineer Brice Ericson D. Hernandez (on screen) speaks at the House Infrastructure Committee (InfraComm) hearing on anomalous flood control projects. — PHILIPPINE STAR/MIGUEL DE GUZMAN

By Erika Mae P. Sinaking

THE DEPARTMENT of Public Works and Highways (DPWH) on Monday formally dismissed three officials of the Bulacan first district Engineering Office after finding them guilty of multiple administrative offenses linked to anomalous flood control projects.

In a decision dated Sept. 15 signed by DPWH Secretary Vivencio “Vince” B. Dizon, former Assistant District Engineer Brice Ericson D. Hernandez, Construction Division Chief Jaypee D. Mendoza, and Accountant Juanito C. Mendoza were ordered removed from service.

The officials were found guilty of “disloyalty to the Republic of the Philippines and to the Filipino people, grave misconduct, gross neglect of duty, and conduct prejudicial to the best interest of the service.”

Aside from dismissal, they are permanently barred from holding public office and forfeited any retirement benefits. Their civil service eligibility has also been canceled.

The order stated the penalty is “without prejudice to the filing of separate civil or criminal charges.”

Political analyst and University of the Philippines Diliman professor Danilo A. Arao said the dismissal of erring DPWH officials is “a step in the right direction.”

“But all of those found guilty after due diligence in investigating should be sanctioned appropriately. The investigation should extend to CoA (Commission on Audit), DBM (Department of Budget and Management), Congress, and even Malacañang,” Mr. Arao told BusinessWorld via chat.

“The concerned private contractors and DPWH officials are just the tip of the iceberg, so to speak,” he added.

Perlita M. Frago, associate professor of political science at UP Diliman, said firing these government officials will not solve systemic issues, adding that mechanisms must be implemented at all levels.

“Removing people from their positions will not eradicate systemic corruption unless they are the only problem. There should be mechanisms at all levels to ensure these anomalies do not happen again, and there should be more transparency in the process,” she told BusinessWorld via chat.

“More importantly, politicians and elected officials should be excluded from the process; otherwise, permanent disqualification from public office should serve as a deterrent,” she added.

Ken Abante, co-convener of the People’s Budget Coalition, said the government should not just prosecute the “small fish but the masterminds behind this flood control scandal.”

CREC switches on P10-B Batangas solar farm with battery storage

PHILIPPINE STAR/NOEL B. PABALATE

CITICORE Renewable Energy Corp. (CREC) has energized a P10-billion, 197-megawatt-peak solar farm in Batangas with battery storage, marking the company’s first large-scale attempt to deliver baseload-like power from solar.

“Our Citicore Solar Batangas 1 is the first in the Philippines to prove that solar can be true baseload power. This is a huge step forward in the country’s renewable energy transition,” CREC President and Chief Executive Officer Oliver Tan said in a statement on Monday.

CREC Chairman Edgar B. Saavedra said the battery support allows the plant to dispatch electricity 24 hours a day, seven days a week.

The newly energized facility forms part of CREC’s plan to deliver its first gigawatt (GW) of renewable energy capacity by yearend through 11 projects in Pangasinan, Pampanga, Batangas, Quezon, and Negros Occidental.

Three of the Batangas sites will also host battery energy storage systems with a combined capacity of 760 megawatt-hours (MWh).

“With 1.5 GWh of battery energy storage systems in place, we are prepared to replicate this breakthrough starting in Batangas,” Mr. Tan said.

The projects under development are on track for energization by 2025, expected to cut nearly 2.8 billion tons of carbon emissions and generate electricity sufficient to power about 800,000 homes annually.

At present, CREC has 587 MW of combined gross installed capacity across 13 solar facilities in the country.

It aims to complete its first GW by end-2024 before moving to its second GW of projects, which will include solar, integrated renewable energy and energy systems, and onshore wind.

CREC was among the major winners in the fourth round of the Department of Energy’s green energy auction, which awarded 9,423.622 MW of renewable capacity for delivery between 2026 and 2029. — Sheldeen Joy Talavera

SM Prime files with SEC for P17-B fixed-rate bond issuance

SMPRIME.COM

SM PRIME HOLDINGS, INC. (SMPH) is hoping to raise up to P17 billion from a peso-denominated fixed-rate bond issuance, following its $350-million debut offering of US dollar-denominated senior notes.

In a stock exchange disclosure on Monday, the listed property developer said it filed an application with the Securities and Exchange Commission (SEC) to issue P12 billion in fixed-rate bonds, with an oversubscription option of up to P5 billion.

The proposed issue represents the third tranche of SM Prime’s P100-billion debt securities program cleared by the SEC in June 2024.

Philippine Rating Services Corp. (PhilRatings) assigned the bonds the highest rating of PRS Aaa with a “stable” outlook, indicating “extremely strong” capacity to meet financial commitments.

PhilRatings also affirmed the PRS Aaa rating of SM Prime’s P141.5-billion outstanding bonds.

The offer will consist of five-year Series AB bonds due in 2030, seven-year Series AC bonds due in 2032, and 10-year Series AD bonds due in 2035.

SM Prime said proceeds will help fund its 16 major redevelopments and 12 new lifestyle malls scheduled until 2030, as well as the opening of new malls in Xiamen and Fujian, China.

“After the strong demand for its oversubscribed dollar-denominated issuance, SMPH’s planned P17-billion offering is also expected to attract solid investor interest,” First Metro Securities Brokerage Corp. Equity Research Analyst Nicole Aquino said in a Viber message.

“While indicative rates have yet to be disclosed, pricing is expected to be close to the previous 6% to 6.4%, offering an attractive spread over the PH 10-year bond yield,” she added.

Last week, the company raised $350 million from its first dollar bond issuance, while shelving its planned $1-billion real estate investment trust listing to beyond 2026 due to unfavorable market conditions.

SM Prime reported an 11% rise in its first-half net income to P24.5 billion.

Shares in SM Prime slipped 0.21% or five centavos to P23.85 apiece on Monday. — Beatriz Marie D. Cruz